Thai hotel group Minor International Pcl (MINT) is considering increasing the budget for its 5-years investment plan during 2016-20 in order to acquire the assets that become cheaper due to the global economic slowdown.
Meanwhile, it plans to acquire the remaining eight hotels of Tivoli Hotels and Resorts in Portugal. This is a part of its aggressive expansion in the overseas market. During the beginning of this year, it had acquired four hotels in Portugal and two in Brazil from Tivoli for around $200 million.
MINT’s vice president of strategic planning, Chaiyapat Paitoon said that the new plan was expected to be proposed to the company’s board of directors, for approval in October.
“Our new investment plan will be adjusted in line with the world’s uncertain economy by considering the interest rate change in the United States and the slowdown economy in China. It’s likely that we will add more budget from earlier planned 52 billion baht,” he said.
Of that, around 20 billion baht will be used to explore new business opportunities and the rest will go toward acquiring the assets globally.The company targets a net profit growth of 15-20 per cent per year.
In the next five years, it would like to have at least 190 hotels, up from current number 133, 400 property projects from presently owned 71 and 3,300 restaurants, which is almost double the 1,747 restaurant it has at present.
Chaiyapat said that the net profit this year is expected to the highest ever, much more than the 4.4 billion baht last year. The company has already managed to increase its net profit for the first six months by 32 per cent (from the same period last year). This is mostly due to the profit from Sun International Ltd, which was acquired by MINT in 2014.
To achieve its target revenue growth of 12-14 per cent each year, the company will focus on three strategies: increase the profit margin for its own brand, renovate and add more value to its hotel assets, and to invest and acquire good assets.